Dear John: We are selling commercial property we’ve held for many years and have been urged to set up a 1031. As we are looking for low risk and a minimal amount of work, someone else suggested a second option, a Tenant in Common. Have you heard of these? -RD>Any suggestions? B.D.

Dear B.D.: You can do either, but Roy Beckerman of ERE LLP Accountants and Advisors in New York says a Tenant in Common plan will create a less liquid investment.

Section 1031 of the U.S. Tax Code allows a taxpayer to defer gains when a piece of property is sold. But that occurs only if the sale is reinvested in a timely fashion in similar property.

“Timely” usually means that within 45 days you identify up to three replacement properties. And you have to close on a purchase within 180 calendar days of selling a piece of property.

The proceeds from the first sale can never go into your pocket, bank account or anything similar. The money has to be kept in escrow.

“Sometimes the price of the replacement property is too high,” says Beckerman, and the person reinvesting his money can’t afford the whole thing himself. “In those cases, the taxpayer must settle for purchasing only a portion of the new replacement property.”

But reinvesting the proceeds into a partnership won’t qualify for a 1031 tax deferral. So another way to reinvest would be into a TIC, or a property owned as “Tenants In Common.”

“The TIC structure is less liquid for future resale,” says Beckerman, “but will serve the purpose of deferring the gain on the original sale.” You also have to have someone else willing to invest with you on a TIC, which may also limit your ability to use this tax-deferral method.

Some companies are already putting together TICs for those who can’t do it themselves.

And if these TICs can be bought and sold – as some can now be – the liquidity limitation may eventually disappear.

Dear John: You recently said that an employer can ask the IRS to extend the useful life of a flex-spending account until March. Can you tell me what the form is called or possibly, link me to the site where I can get the form? M.L.

Dear M.L.: Here’s the deal. In May, the IRS decided that it would extend the time in which you could use flex-spending money. You now have until the 15th day of the third month of the new year – in human talk that’s March 15 – to spend money contributed to most flex-spending account.

So you won’t have to get a New Year’s Eve nose job just to use up any leftover money.

But you can’t do it on your own – your employer has to ask the IRS for this grace period. How does that happen? Your company has to amend its flex-spending contract with its provider. Here at News America that meant changing the contract with Aetna.

Aetna then makes the changes with the IRS, and you can have your nose job on March 15 instead.

Send your questions to Dear John, The New York Post, 1211 Ave. of the Americas, N.Y., N.Y., 10036, or john.crudele@nypost.com.